Does Being In An Accident Affect The Price Of My Car?
Accidents not only leave physical marks on your car but also raise concerns about its safety and reliability, affecting its retail potential.
When selling your car, you’ll need to disclose any past accidents. Minor damage typically has little to no impact on value, as dealers understand that used cars seldom come without imperfections.
However, significant damage can significantly decrease retail value.
Learn more about the implications of an accident history on your car’s worth.
Types of Accidents
- Category A – Car is irredeemable and must be scrapped. Cannot be broken down into parts and resold.
- Category B – Car is irredeemable but vehicle may be broken down into parts and resold.
- Category S – Car has endured structural damage and requires professional attention and repairs. Once fixed it can be driven on the roads again.
- Category N – Non- structural damage, could be to the brakes or steering. Also requires professional attention
Accidents and retail price
However, remember that what you car was worth before the accident also plays a role in the rate of depreciation and its value post-collision.
- Degree of damage – After an accident, assess the severity of the damage, including structural and cosmetic aspects. Structural damage can significantly impact a car’s value, as it may compromise its safety and overall integrity. Similarly, cosmetic damage, while less critical, can still affect the car’s aesthetics and market appeal.
- Quality of repairs – Accidents may arise doubts about a car’s overall quality and reliability, even after repairs. Ensuring that you have high-quality repairs by professionals using genuine parts can help mitigate reductions in vehicle value, even if there’s been extensive damage. Documentation of all repairs is vital as a clear record of the work undertaken! Qarranties on repair work also offer reassurance to potential buyers regarding the quality and reliability of the vehicle.
- Insurance costs – A car with a history of accidents may incur higher insurance premiums, a fact that can deter buyers. Understanding a car’s previous insurance claims provides insights into its accident and repair history. Moreover, it allows for an assessment of how these claims might impact future insurance premiums, which can influence the car’s retail value.
Cars placed in insurance categories A and B will only be worth what you can get when you scrap your car. Category S and N cars still have hope of selling a car to a dealer or private buyer, but they’ll be worth less than vehicles that have never been involved in an accident.
Other things that impact car value, regardless of accidents, will continue to apply. So, as well as the car depreciation that comes with accidents, you’ll also have to remember that age and mileage play a role.
Diminished Value
It’s important to recognise that even fully repaired cars will still have an accident history, which can continue to affect their value.